The Buckle, Inc. Reports Fourth Quarter and Fiscal Year 2006 Net Income
March 13, 2007 at 07:00 AM EDT
KEARNEY, Neb., March 13 /PRNewswire-FirstCall/ -- The Buckle, Inc. (NYSE:BKE) announced today financial results for the fourth quarter and fiscal year ended February 3, 2007.
Net sales for the 14-week fourth quarter ended February 3, 2007 increased 14.1 percent to $175.0 million compared to net sales of $153.4 million for the 13-week fourth quarter of fiscal 2005. Comparable store net sales for the fourth quarter rose 4.8 percent from comparable store net sales for the same 14-week period last year.
Net sales for the 53-week period ended February 3, 2007 increased 5.8 percent to $530.1 million from net sales of $501.1 million for the 52-week period ended January 28, 2006. Comparable store net sales for fiscal 2006 were flat compared to the same 53-week period last year.
Net income for the fourth quarter of fiscal 2006 was $22.1 million, or $0.77 per share ($0.73 per share on a diluted basis), compared with $19.1 million, or $0.66 per share ($0.64 per share on a diluted basis) for the fourth quarter of fiscal 2005.
Net income for the fiscal year ended February 3, 2007 was $55.7 million or $1.93 per share ($1.86 per share on a diluted basis), compared with $51.9 million or $1.76 per share ($1.69 per share on a diluted basis) for the fiscal year ended January 28, 2006.
Earnings per share and the weighted average shares outstanding for the prior year fourth quarter and year-to-date periods have been adjusted to reflect the impact of the Company's 3-for-2 stock split paid in the form of a stock dividend on January 12, 2007.
The Company adopted Statement of Financial Accounting Standards ("SFAS") No. 123R, Share-Based Payments, ("SFAS No. 123R") at the beginning of fiscal 2006. The additional compensation expense recognized under SFAS No. 123R impacted the Company's basic and diluted earnings per share by 3 cents and 5 cents per share for the fourth quarter ended February 3, 2007 and for the full fiscal year 2006, respectively. The fourth quarter and year-to-date impact of SFAS No. 123R includes 2 cents of stock option compensation expense related to the accelerated vesting of certain stock options during the fourth quarter. The accelerated vesting triggered the early recognition of compensation expense related to the stock option grants, which the Company had been recording on a straight line basis over the previously expected remaining vesting period through December 30, 2008. No compensation expense related to stock option grants was recognized by the Company for the prior fiscal year 2005.
During the fourth quarter, the Company achieved its performance goals on the 2006 non-vested stock grant. This changed the Company's estimate of the number of non-vested shares granted by the Company that would ultimately vest. This increase in the number of shares resulted in incremental compensation expense for the fourth quarter that had a 2 cents per share impact on the Company's reported basic and diluted earnings per share for the quarter.
During fiscal 2006, the Company purchased and retired 654,300 shares of its outstanding common stock at an average price of $24.52 per share. These shares were purchased pursuant to the 1,500,000 share corporate stock repurchase program authorized by the Board of Directors. The Company had 380,100 shares remaining as of February 3, 2007 to be purchased to complete this authorization. The average price and number of shares authorized and purchased above have been adjusted to reflect the impact of the Company's 3-for-2 stock split paid in the form of a stock dividend on January 12, 2007.
As of February 3, 2007, the Company operated 350 retail stores in 38 states compared with 338 stores in 38 states as of January 28, 2006.
Management will hold a conference call at 10:00 a.m. EDT today, to discuss fourth quarter results. To participate in the call, please dial (800) 398-9386 and reference the conference code 865593. A replay of the call will be available for a two-week period beginning March 13, 2007, at 1:30 p.m. EDT by dialing (800) 475-6701 and entering the conference code 865593.
Headquartered in Kearney, Nebraska, The Buckle, Inc. is a retailer of casual apparel, footwear and accessories for young men and women. During February, the Company opened one store and closed one store. It currently operates 350 retail stores in 38 states compared with 340 stores in 38 states at this same time a year ago.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995; All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors which may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
Note: News releases and other information on The Buckle, Inc. can be accessed
at www.buckle.com on the Internet. Contact: Karen B. Rhoads, Chief Financial Officer The Buckle, Inc. 308/236-8491 Financial Tables to Follow THE BUCKLE, INC. STATEMENTS OF INCOME (Amounts in Thousands Except Per Share Amounts) (Unaudited) Fourteen Thirteen Fifty-three Fifty-two Weeks Ended Weeks Ended February 3, January 28, February 3, January 28, 2007 2006 2007 2006 SALES, Net of returns and allowances $174,986 $153,357 $530,074 $501,101 COST OF SALES (Including buying, distribution and occupancy costs) 99,416 89,064 322,760 307,063 Gross profit 75,570 64,293 207,314 194,038 OPERATING EXPENSES: Selling 35,490 30,474 107,592 100,148 General and administrative 8,447 5,494 20,701 17,568 43,937 35,968 128,293 117,716 INCOME FROM OPERATIONS 31,633 28,325 79,021 76,322 OTHER INCOME, Net 2,973 2,270 9,032 6,123 INCOME BEFORE INCOME TAXES 34,606 30,595 88,053 82,445 PROVISION FOR INCOME TAXES 12,534 11,453 32,327 30,539 NET INCOME $22,072 $19,142 $55,726 $51,906 EARNINGS PER SHARE: Basic $0.77 $0.66 $1.93 $1.76 Diluted $0.73 $0.64 $1.86 $1.69 Basic weighted average shares 28,847 29,033 28,902 29,484 Diluted weighted average shares 30,232 29,996 30,014 30,671 THE BUCKLE, INC. BALANCE SHEETS (Amounts in Thousands Except Share and Per Share Amounts) (Unaudited) February 3, January 28, ASSETS 2007 2006 CURRENT ASSETS: Cash and cash equivalents $35,752 $23,438 Short-term investments 115,721 134,672 Accounts receivable, net of allowance of $72 and $94, respectively 4,046 4,824 Inventory 70,306 68,731 Prepaid expenses and other assets 12,401 6,894 Total current assets 238,226 238,559 PROPERTY AND EQUIPMENT: 215,630 199,618 Less accumulated depreciation and amortization (121,811) (108,222) 93,819 91,396 LONG-TERM INVESTMENTS 31,958 41,654 OTHER ASSETS 4,195 2,657 $368,198 $374,266 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $14,670 $11,119 Accrued employee compensation 17,800 20,096 Accrued store operating expenses 4,468 3,725 Gift certificates redeemable 6,709 5,495 Income taxes payable 5,562 4,696 Total current liabilities 49,209 45,131 DEFERRED COMPENSATION 3,368 2,518 DEFERRED RENT LIABILITY 29,034 26,824 Total liabilities 81,611 74,473 COMMITMENTS STOCKHOLDERS' EQUITY: Common stock, authorized 100,000,000 shares of $.01 par value; issued and outstanding; 29,408,576 shares at February 3, 2007 and 19,339,153 shares at January 28, 2006 294 193 Additional paid-in capital 43,493 39,651 Retained earnings 242,800 261,948 Unearned compensation - restricted stock -- (1,999) Total stockholders' equity 286,587 299,793 $368,198 $374,266
Source: The Buckle, Inc.